To print this text, all you want is to be registered or login on Mondaq.com.
[In this very special “throwback” edition of the Texas Tax Round
Up, newly reemerged from out the Super-Saragossa Sea of the
Internet, we travel back to a much simpler time-February 2022.]
Howdy y’all! Has it been a month already? We’ve obtained
one other motion-packed month of Comptroller-related information. Here we
go!
Court Cases
Courts of Appeals
Hegar v. Black, Mann, and Graham, L.L.P.,
No. 03-20-00391-CV (Tex. App.-Austin Feb. 25, 2022)
- The Texas Third Court of Appeals held {that a} taxpayer could
self-assess and pay tax underneath protest for subsequent durations after
the submitting of a protest swimsuit and embody these durations within the swimsuit
by amending the petition- in different phrases, there isn’t any
requirement that the Comptroller truly assess tax for these
durations. Thus, the Court of Appeals upheld that the District
Court’s denial of the Comptroller’s plea to the
jurisdiction for these subsequent durations. - On the deserves, nonetheless, the Court of Appeals held that the
taxpayer-a legislation agency that specialised in getting ready mortgage packages for
lending establishments-bought taxable knowledge processing (as a substitute of
nontaxable authorized or paralegal) companies from distributors when the
distributors created an interface between every lenders’ mortgage
origination methods and the distributors’ doc era
methods that produced the mortgage package deal, which the legislation agency then
reviewed to make sure the authorized necessities have been met.
Proposed Rules
Franchise Tax
34 Tex. Admin. Code 3.589 (Margin: Compensation)-Proposing an
replace to the rule on the compensation deduction by incorporating
modifications:
- in statute-
B. 1286, 83d Leg., Reg. (2013) (regarding skilled
employer organizations) and
H.B 1195, 87th Leg., Reg. (2021) (regarding Covid aid
loans and grants); - attributable to a court docket case-Winstead PC v. Combs, No.
D-1-GN-12-000141 (201st Dist. Ct., Travis County Feb. 7, 2013)
(discovering that sure provisions of the present rule have been invalid
to the extent they disallowed deductions that have been allowed for
federal tax functions); - in Comptroller coverage-STAR Accession Nos. 201510539L (June 14, 2016)
(stating that wages embody these paid to staff at places of work
outdoors of the United States and reported on varieties in such overseas
nation which can be considerably equal to a W-2), and 201206444L (June 12, 2012) (permitting taxpayers
to amend franchise studies to alter or make an election to deduct
prices of products bought or compensation).
See 47 Tex. Reg. 715, 753 (Feb. 18, 2022).
Notable Additions to the State Tax Automated Research (STAR)
System
General
Successor Liability
Comptroller’s Decision No. 111,061
(2022)-The ALJ discovered that an operator that acquired pure gasoline
leases was answerable for the pure gasoline severance tax owed by the
previous operator.
Personal Liability
Comptroller’s Decision No. 117,194
(2022)-The ALJ discovered that the Comptroller didn’t show by
clear and convincing proof that an organization’s president was
personally answerable for gross sales and use taxes that the corporate had
did not pay. The Comptroller didn’t present proof exhibiting
that the president was concerned within the firm’s gross sales and use
tax reporting for the durations in query. To the opposite,
proof confirmed that the president didn’t work on the firm, did
not supervise or prepare staff, and didn’t maintain or attend
conferences throughout the years in query.
Franchise Tax
Flow-through Funds
Comptroller’s Decision No. 117,091
(2021)-The ALJ discovered {that a} taxpayer that supplied audiovisual
gear to motels to be used by the motels’ prospects in occasions
couldn’t exclude from gross income sure “gross sales
commissions” that the taxpayer paid to the motels. The
taxpayer didn’t present that the motels have been licensed as actual property
brokers or gross sales brokers underneath Texas Occupations Code chapter 1101
nor that the taxpayer issued Forms 1099-MISC to the motels as
purportedly required by Tex. Tax Code § 171.1011(ok)(1).
Forfeiture
Comptroller’s Decision No. 117,904
(2022)-The ALJ discovered that the only member and officer of a
firm whose company privileges have been forfeited for a interval of
roughly seven months attributable to failure to file a franchise tax
report earlier than being reinstated was answerable for the evaluation of
gross sales tax made in opposition to the corporate for this era and couldn’t
problem the underlying legal responsibility.
Sales and Use Tax
Amusement Services
Comptroller’s Decision No. 117,180
(2021)-The ALJ discovered {that a} taxpayer that bought and resold
tickets to sporting occasions, live shows, and theatrical performances
was offering a taxable amusement service.
Comptroller’s Decision No. 117,326
(2021)-The ALJ decided that an entry payment charged for entry
to driving trails to be used by all-terrain autos was topic to
gross sales and use tax as an amusement service.
Debt Collection Services
Comptroller’s Decision No. 117,422
(2022)-The ALJ discovered {that a} taxpayer was offering taxable debt
assortment companies when it supplied “authorized companies,
transport companies, truck and semi-truck restoration, plane
restoration, skip tracing, submitting court docket orders in Texas and
nationwide, finding property for litigation, and property restoration
companies.”
Real Property Services
Comptroller’s Decision No. 115,679
(2022)-The ALJ discovered {that a} taxpayer’s vent hood
upkeep and cleansing companies have been taxable actual property
companies and that the taxpayer didn’t present proof that the
companies have been exempt from tax underneath Tex. Tax Code § 151.1011
as a result of the vent hoods have been used within the manufacturing of meals.
Manufacturing Exemption
Comptroller’s Decision No. 116,783
(2022)-The ALJ decided {that a} taxpayer that supplied
threading companies on oilfield casing was offering processing
companies and thus might buy sure gadgets tax-free underneath the
manufacturing exemption. In making this willpower, the ALJ
discovered that threading casing causes it to function in a brand new or
totally different method, that the casing couldn’t be put in downhole
with out being threaded, and that the truth that the taxpayer didn’t
personal the casing was irrelevant for functions of the manufacturing
exemption.
Nontaxable Services/Taxable Data Processing Services
STAR Accession No. 202201017L (Jan. 7, 2022)-In
this personal letter ruling, the Comptroller decided {that a}
taxpayer’s charges to reimburse itself for fees by medical
service suppliers for offering copies of medical data and
getting ready requests for medical data weren’t topic to gross sales
and use tax. However, taxpayer’s copy charges for optical
character recognition, digital Bates labeling, bookmarking
data, duplicating movie, and copying CDs have been discovered to be taxable
knowledge processing companies.
Also in February, the Texas Supreme Court heard oral arguments
in Hegar v. Health Care Service Corp., No.
21-0080, regarding insurance coverage taxes. So, possibly we’ll have
an opinion to mull over quickly!
The content material of this text is meant to supply a common
information to the subject material. Specialist recommendation ought to be sought
about your particular circumstances.
POPULAR ARTICLES ON: Tax from United States
Freeman Law
Generally, the purchaser of property doesn’t assume the liabilities of the vendor. Successor legal responsibility, nonetheless, is an exception to the final rule. Under the successor-legal responsibility doctrine, …
Stroock & Stroock & Lavan LLP
“As prevalent as Real Estate Investment Trusts (REITs) are these days in the real estate sector, one might think they are extremely simple to set up and operate,” the Stroock group writes.
Cadwalader, Wickersham & Taft LLP
On March 28, 2022, the Biden Administration launched its finances proposal for Fiscal Year 2023 (the Budget). We summarize beneath the tax elements of the Budget of explicit pursuits to U.S. company taxpayers,…
Texas Tax Roundup—February 2022 (RECOVERED!) – Tax Authorities & More Latest News Update
Texas Tax Roundup—February 2022 (RECOVERED!) – Tax Authorities & More Live News
All this information that I’ve made and shared for you individuals, you’ll prefer it very a lot and in it we hold bringing matters for you individuals like each time so that you just hold getting information info like trending matters and also you It is our aim to have the ability to get
every kind of stories with out going by us in order that we will attain you the newest and finest information totally free so as to transfer forward additional by getting the data of that information along with you. Later on, we are going to proceed
to present details about extra today world news update forms of newest information by posts on our web site so that you just all the time hold shifting ahead in that information and no matter form of info will likely be there, it would positively be conveyed to you individuals.
Texas Tax Roundup—February 2022 (RECOVERED!) – Tax Authorities & More News Today
All this information that I’ve introduced as much as you or would be the most totally different and finest information that you just individuals are not going to get wherever, together with the data Trending News, Breaking News, Health News, Science News, Sports News, Entertainment News, Technology News, Business News, World News of this information, you will get different forms of information alongside along with your nation and metropolis. You will be capable to get info associated to, in addition to it is possible for you to to get details about what’s going on round you thru us totally free
so as to make your self a educated by getting full details about your nation and state and details about information. Whatever is being given by us, I’ve tried to carry it to you thru different web sites, which you will like
very a lot and in case you like all this information, then positively round you. Along with the individuals of India, hold sharing such information essential to your family members, let all of the information affect them and so they can transfer ahead two steps additional.
Credit Goes To News Website – This Original Content Owner News Website . This Is Not My Content So If You Want To Read Original Content You Can Follow Below Links